Sinn Fein have labelled as “sinister and provocative” the flying of an SAS flag close to where the British Army unit shot dead eight IRA men.

The flag has appeared in Loughgall, Co Armagh , where the IRA unit was gunned down as they took part in a bombing mission against a police station in 1987. An innocent civilian, Anthony Hughes, was also shot dead.

A commemoration event for the 30th anniversary of the incident on Sunday sparked a row when it emerged that Sinn Fein Assembly leader Michelle O’Neill would be giving an address.

Speaking at the event, in Cappagh, Co Tyrone , she said: “I see no contradiction whatsoever in commemorating our republican dead while reaching out to our unionist neighbours to build the future - Orange and Green together on the basis of full equality and mutual respect.”

But she drew criticism from unionists, with the DUP’s Jeffrey Donaldson saying her attendance “reopened wounds”.

The Loughgall commemoration in Cappagh

Mr Donaldson said all families had a right to remember their dead, but that the event on Sunday was “more than that”.

He told Talkback: “It was an opportunity for Michelle O’Neill to say the murder of innocent people by the IRA was wrong - to reach out to their families.”

But, today, reacting to the appearance of the SAS flag Sinn Féin’s Mickey Brady condemned it as “insensitive”, adding it “will add further distress to the families of the nine men who were killed there 30 years ago”.

The Newry and Armagh MP added: “Having recently attended a commemoration to mark the 30th anniversary of the Loughgall massacre, I’m appalled to learn that a British SAS flag has been reported as flying in the village.

Aerial scene of the SAS ambush of eight man IRA gang at Loughall

“This shameful act of glorification will only serve to add further distress to the families of the nine men as we approach the 30th anniversary.”

Mid Ulster MP Francie Molloy also slated the move, describing it as “sinister and provocative”.

He added: “Questions will be asked as to who has been responsible for this act, particularly as to whether former or serving members of the British forces were involved.”